India’s deep connection with gold was once again visible after the government raised import duty sharply on May 13, 2026. The basic customs duty doubled from 5% to 10%, while the cess increased from 1% to 5%. This pushed the total levy to 15%, the same level seen in 2022. As a result, domestic prices jumped quickly, with 24K gold per 10 grams rising from ₹1,47,160 to ₹1,62,120.
Despite the sudden rise, jewellery shops, ETFs, and digital gold platforms saw heavy buying. Weddings, cultural traditions, and investment demand kept consumers active, even though the Prime Minister had earlier urged citizens to reduce gold purchases to protect foreign reserves. India imports 700–800 tonnes of gold every year, making it the second most imported item. In FY26 alone, gold imports cost the country $72 billion.
Jewellers expect buyers to shift towards lightweight jewellery as affordability becomes difficult. Old gold exchange is also likely to dominate purchases. Experts advise checking hallmarking, certification, and quality before buying.
Investment demand has also grown, with analysts pointing to gold’s role as a hedge against inflation, currency weakness, and global risks. ETFs adjusted prices with a short delay, but fund managers see opportunities to accumulate during dips.
Even with higher costs, gold remains a trusted cultural and financial asset in India.
